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Are Utilities Stocks Lagging E.ON (EONGY) This Year?

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The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is E.ON SE (EONGY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.

E.ON SE is a member of our Utilities group, which includes 106 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. E.ON SE is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for EONGY's full-year earnings has moved 1.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, EONGY has moved about 1.6% on a year-to-date basis. In comparison, Utilities companies have returned an average of 0.7%. This means that E.ON SE is performing better than its sector in terms of year-to-date returns.

One other Utilities stock that has outperformed the sector so far this year is Sabesp (SBS - Free Report) . The stock is up 8.9% year-to-date.

In Sabesp's case, the consensus EPS estimate for the current year increased 4.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, E.ON SE belongs to the Utility - Electric Power industry, a group that includes 59 individual companies and currently sits at #144 in the Zacks Industry Rank. This group has gained an average of 1.3% so far this year, so EONGY is performing better in this area.

In contrast, Sabesp falls under the Utility - Water Supply industry. Currently, this industry has 13 stocks and is ranked #19. Since the beginning of the year, the industry has moved -4.5%.

Investors interested in the Utilities sector may want to keep a close eye on E.ON SE and Sabesp as they attempt to continue their solid performance.


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